You are here: Home - Saving & Banking - News -

Retailers just as distrusted as High Street banks

Written by:
Brits trust retailers as little as they trust banks, as consumer trust in financial service providers further decreases.

According to a study by Rostrum Research, 51% of respondents said that they do not trust retailers any more than traditional financial services providers, while 38% indicated that they trust banks and retailers to the same degree. 

Only 11% of Brits trust retailers more than High Street banks to handle their financial affairs.

Mark Houlding, CEO of Rostrum Research, said: “New entrants are looking to shake up the UK financial services market.

“Supermarkets and new types of financial services providers are attempting to take market share from the established players – but our research suggests that winning the hearts and minds of consumers will not be easy or straightforward.

“That said, by combining well-known brands with an established store network – a handful of these retailers, such as Tesco (33%), M&S (21%) and John Lewis (20%), are making progress in encouraging customers to trust their financial services offerings, particularly the all-important current account product.

“However, it remains to be seen whether these new players are able to really take a large share of the market.”

Price plays an important part in the selection process for consumers as household budgets feel the strains of the current economic climate.

40% said that price was the most important factor, with loyalty to an existing retailer coming second (29%).

Houlding added: “Supermarkets and high street giants have a wealth of experience when it comes to understanding their customers and encouraging consumer loyalty.

“However, our research shows that the perceived difference between selling consumer goods and financial products is significant and there is a long road ahead for retailers.

“Despite these challenges, the potential for this market represents a big opportunity for retailers who get it right.”

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Santander profits tumble 94%

Spanish banking giant Santander has seen its profits tumble by more than 90% in the third quarter after bad property...